©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Oklahoma Adjuster Exam #2 Questions With
Verified Answers
An individual applied for auto insurance and obtained coverage from EMU Insurance Company.
Who is the first party in the contract? - Answers✔The Insured
If a fire hazard causes damage to a building, the fire is? - Answers✔A peril
wearing a seatbelt in a car is an example of which method or managing risk? - Answers✔Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents are
insured, so there is no reason to worry. Which type of hazard is this an example of? -
Answers✔Morale
A flood is an example of - Answers✔A peril
An insurance company incorporated in Oklahoma and conducting business in Oklahoma is
known as a domestic company. What kind of company are they considered if they do business in
Minnesota? - Answers✔Foreign
Which of the following is true about stock companies - Answers✔a stock company pays
dividends
What do insurance companies use to help predict how many losses will occur in a group or class
of individuals - Answers✔The law of large numbers
States require companies to have a license to sell insurance in the state. The license is called -
Answers✔A certificate of authority
What is a requirement of an insurable pure risk - Answers✔Premium must be affordable
Insurers may be classified according to their financial strength. This does NOT include -
Answers✔number of clients
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Carl hands out a business card with his company's logo to all new prospects that he meets at a
golf outing. This is an example of - Answers✔implied authority
Agency is a relationship in which one person is authorized to represent and act for another
person or corporations. In insurance, the insurance agent acts on behalf of - Answers✔Principal
Which of the following types of advertising does not involve an agent and is conducted through
the mail, by advertisements in newspapers and magazines, on television and radio, or through the
internet? - Answers✔direct response
Which of the following individuals represent only one insurance company - Answers✔A captive
agent
Which of the following terms describes a legal agreement between two competent parties that
promises a certain performance in exchange for a certain consideration? - Answers✔a contract
Which of the following is not an element of a legal contract? - Answers✔Unilateral
Jill is filling out an insurance application with information that she believes to be true. The
information she is providing is considered - Answers✔A representation
A guarantee that something is true is - Answers✔a warranty
The heart of an insurance policy that sates what will be covered is called? - Answers✔The
insuring agreement
What can be found on the declaration page? - Answers✔The amount of coverage provided
Nancy purchased an auto policy on her new car. There are no other insureds listed on the
declaration page. Nancy is considered - Answers✔The named insured
The duties following a loss condition lists the insured's responsibilities after a loss. One of these
duties requires that the insured completes an official inventory of the damages. This is known as
- Answers✔detailed proof of loss
Which statement regarding the rights and responsibilities of an insurer or insured when an
insurance contract is canceled or nonrenewed - Answers✔If the insured had paid premiums in
advance for future months, any unused premium (unearned premium) must be returned to the
insured upon cancellation of a policy
Which ratios would an insurer use to evaluate performance? - Answers✔Loss ratio, expense
ratio, and/or combined ratio
Which of the following terms is an oral or written statement made by the agent that gives the
insured immediate coverage for a specified time? - Answers✔a binder
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Which of the following is an example of insurable interest? - Answers✔A person's interest in the
home they own
How is the expense ratio calculated ? - Answers✔by dividing the underwriting expenses by the
written premium
What is the primary source of underwriting information? - Answers✔the application
Which of the following premium rating methods is determined by considering the individual risk
and using careful judgement and the experience of the underwriter? - Answers✔the judgement
rating
Which of the following is a way to assign rates? - Answers✔manual
Under the Fair Credit Reporting Act, the maximum penalty for obtaining consumer information
reports under false pretense is? - Answers✔$5,000, imprisonment for one year, or both
An act of terrorism must be certified by the Secretary of Treasury in consultation with the
Secretary of Homeland Security and the - Answers✔US Attorney General
Which of the following acts requires financial institutions; companies that offer consumers
financial products or services like loans, financial, or investment advice; and insurance
companies, to explain their information-sharing practices to their customers and to safeguard
sensitive data? - Answers✔Graham Leach Beach Act
Imprisonment may be ordered for up to how many years if false statements made jeopardized the
safety and soundness of an insurer and were a significant cause of the insurer being placed in
conservation, rehabilitation or liquidation by the courts? - Answers✔15
A person's property can be divided into two classes: real property (buildings) and -
Answers✔personal property
What is covered automatically under the basic form (DP) - Answers✔Fire, lightning and internal
explosion
The policy limit is known as - Answers✔Limit of liability, limit of insurance, or limit of
coverage
Which policy insures against all risk of direct physical loss except those specifically excluded in
the policy? - Answers✔an open peril policy
In a broad peril policy, burglary and accidental discharges of water are not covered if the
building has been vacant for more than - Answers✔60 consecutive days
3
ALL RIGHTS RESERVED.
Oklahoma Adjuster Exam #2 Questions With
Verified Answers
An individual applied for auto insurance and obtained coverage from EMU Insurance Company.
Who is the first party in the contract? - Answers✔The Insured
If a fire hazard causes damage to a building, the fire is? - Answers✔A peril
wearing a seatbelt in a car is an example of which method or managing risk? - Answers✔Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her car and its contents are
insured, so there is no reason to worry. Which type of hazard is this an example of? -
Answers✔Morale
A flood is an example of - Answers✔A peril
An insurance company incorporated in Oklahoma and conducting business in Oklahoma is
known as a domestic company. What kind of company are they considered if they do business in
Minnesota? - Answers✔Foreign
Which of the following is true about stock companies - Answers✔a stock company pays
dividends
What do insurance companies use to help predict how many losses will occur in a group or class
of individuals - Answers✔The law of large numbers
States require companies to have a license to sell insurance in the state. The license is called -
Answers✔A certificate of authority
What is a requirement of an insurable pure risk - Answers✔Premium must be affordable
Insurers may be classified according to their financial strength. This does NOT include -
Answers✔number of clients
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Carl hands out a business card with his company's logo to all new prospects that he meets at a
golf outing. This is an example of - Answers✔implied authority
Agency is a relationship in which one person is authorized to represent and act for another
person or corporations. In insurance, the insurance agent acts on behalf of - Answers✔Principal
Which of the following types of advertising does not involve an agent and is conducted through
the mail, by advertisements in newspapers and magazines, on television and radio, or through the
internet? - Answers✔direct response
Which of the following individuals represent only one insurance company - Answers✔A captive
agent
Which of the following terms describes a legal agreement between two competent parties that
promises a certain performance in exchange for a certain consideration? - Answers✔a contract
Which of the following is not an element of a legal contract? - Answers✔Unilateral
Jill is filling out an insurance application with information that she believes to be true. The
information she is providing is considered - Answers✔A representation
A guarantee that something is true is - Answers✔a warranty
The heart of an insurance policy that sates what will be covered is called? - Answers✔The
insuring agreement
What can be found on the declaration page? - Answers✔The amount of coverage provided
Nancy purchased an auto policy on her new car. There are no other insureds listed on the
declaration page. Nancy is considered - Answers✔The named insured
The duties following a loss condition lists the insured's responsibilities after a loss. One of these
duties requires that the insured completes an official inventory of the damages. This is known as
- Answers✔detailed proof of loss
Which statement regarding the rights and responsibilities of an insurer or insured when an
insurance contract is canceled or nonrenewed - Answers✔If the insured had paid premiums in
advance for future months, any unused premium (unearned premium) must be returned to the
insured upon cancellation of a policy
Which ratios would an insurer use to evaluate performance? - Answers✔Loss ratio, expense
ratio, and/or combined ratio
Which of the following terms is an oral or written statement made by the agent that gives the
insured immediate coverage for a specified time? - Answers✔a binder
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Which of the following is an example of insurable interest? - Answers✔A person's interest in the
home they own
How is the expense ratio calculated ? - Answers✔by dividing the underwriting expenses by the
written premium
What is the primary source of underwriting information? - Answers✔the application
Which of the following premium rating methods is determined by considering the individual risk
and using careful judgement and the experience of the underwriter? - Answers✔the judgement
rating
Which of the following is a way to assign rates? - Answers✔manual
Under the Fair Credit Reporting Act, the maximum penalty for obtaining consumer information
reports under false pretense is? - Answers✔$5,000, imprisonment for one year, or both
An act of terrorism must be certified by the Secretary of Treasury in consultation with the
Secretary of Homeland Security and the - Answers✔US Attorney General
Which of the following acts requires financial institutions; companies that offer consumers
financial products or services like loans, financial, or investment advice; and insurance
companies, to explain their information-sharing practices to their customers and to safeguard
sensitive data? - Answers✔Graham Leach Beach Act
Imprisonment may be ordered for up to how many years if false statements made jeopardized the
safety and soundness of an insurer and were a significant cause of the insurer being placed in
conservation, rehabilitation or liquidation by the courts? - Answers✔15
A person's property can be divided into two classes: real property (buildings) and -
Answers✔personal property
What is covered automatically under the basic form (DP) - Answers✔Fire, lightning and internal
explosion
The policy limit is known as - Answers✔Limit of liability, limit of insurance, or limit of
coverage
Which policy insures against all risk of direct physical loss except those specifically excluded in
the policy? - Answers✔an open peril policy
In a broad peril policy, burglary and accidental discharges of water are not covered if the
building has been vacant for more than - Answers✔60 consecutive days
3
